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【Main Issues and Holdings】
[1] Where competitors may be excluded as a market-dominant business entity in
the vertically integrated upstream market unfairly supplies goods or services at a
lower price than the arm’s length price through a margin squeeze conducted in the
manner of lowering the retail price of complete products in the downstream market,
such act can be deemed as an act of abusing a market-dominant position, which is
prohibited under the Act and subordinate statutes relevant to the monopoly
regulation and fair trade (affirmative)
[2] Meaning of “the arm’s length price” stipulated in Article 5(5)1 of the
Enforcement Decree of the Monopoly Regulation and Fair Trade Act
[3] Standard and method for determining the injustice of “an act of making a
transaction to exclude a competitor business entity” prescribed in the former part of
Article 3-2(1)5 of the Monopoly Regulation and Fair Trade Act
[4] Matters to be considered when determining whether an act of abusing a
position by means of a margin squeeze has injustice as “a transaction which may
exclude competitors by unfairly supplying goods or services at the lower price than
the arm’s length price” stipulated in the former part of Article 3-2(1)5 of the Monopoly
Regulation and Fair Trade Act and Article 5(5)1 of the Enforcement Decree of the
Monopoly Regulation and Fair Trade Act
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